Part I: - Write “True” if the statement is correct and “False” if it is not correct (1 pt each)

1. Projects involve the commitment of scarce resources to a specific line of action, which prevents the use of
those resources elsewhere.
2. Project resources are committed for a long period to produce benefits that are usually quite clearly
identifiable, but which may not occur.
3. Frequently projects involve special financial arrangements.
4. The pattern of resources commitment in projects is usually for capital investments to be made to establish
productive capacity or physical works, which then have a long life of operation or use.
5. Sound development plans require good projects, just as good projects require sound planning.
6. A feasibility study should be carried out only if the necessary financing facilities, as determined by the
studies, can be identified with a fair degree of accuracy.
7. Since projects commit scare resources, project selection is meaningful only when it is placed within a
broader development framework.
8. Project Formulation and Evaluation as a continuous integrated process, is one of the basic components of
economic planning.
9. Program is a definite plan or scheme of any sequence of operations aimed at the attainment of the planned
objectives.
10. Both project and program serves as instruments for the execution of development plans in order to develop
the national economy.
Part II- Multiple Choice:-FOR ALL QUESTIONS, YOU ARE REQUIRED TO PUT THE LETTER OF
YOUR CHOICE ON THE Separate answer sheet PROVIDED.
1. One of the following is not characteristics of project
A. Having objectives
B. Requiring financial, human, material, etc. inputs
C. Generating output (goods/services)
D. All of the above
E. None of the above
2. One of the following is not characteristics of program
A. Having objectives
B. Requiring financial, human, material, etc. inputs
C. Generating output
D. All of the above
E. None of the above
3. The following are main features of project life cycle process, Except
A. information gathering,
 B. analysis
C. Decision-making.
D. A and B above
E. None of the above
4. The first stage in the project cycle is to find potential projects. Therefore, which of the following is/are not
sources of projects
A. stem from the opportunity to make profitable use of available resources.
B. arising from an identified demand in home markets.
C. arising from an identified demand in overseas markets.
D. from proposals to extend existing programs.
E. None of the above
5. Aspect of project appraisal that tries to see whether what is proposed is good from the viewpoint of the national
development interest when all project effects are taken into account.
A. Economic
B. Technical
C. Commercial
D. Organizational
E. None of the above.
6. aspect of project appraisal which examines if the capacity exists for operating the project and see if those
responsible ones can operate it satisfactorily is
A. Managerial
B. Financial
C. Incentives
D. Organizational
E. None of the above.
7. Project can be generated based on the following bases, Except
A. resource base
B. market based
C. need-based
D. All of the above
E. None of the above
8. The appraisals Aspect that concentrate in verifying whether what is proposed will work in the way suggested or
not.
A. Technical
B. Commercial
 C. Organizational
D. Incentives
E. Commercial
9. According to the UNIDO, the investment phase comprises:
A. Analysis of project alternatives
B. Project appraisal and investment decision
C. all data necessary for an investment decision
D. All of the above
E. None of the above

10. The investment phase that links the construction phase and operational phase is.
A. Plant commissioning and start - up
B. Acquisition of land,
C. Construction work and installation.
D. Recruitment and training of personnel.
E. None of the above.
11. Organizational structure that brings better integration of effects and strengths the commitment of project related
personal to the objective of the project.
A. Line and staff organization
B. Divisional Organization
C. Matrix Organization
D. Functional Organization
E. None of the above
12. Which of the following is not true about Functions of planning
A. It provides a basis for organizing work on the project and allocating responsibilities to individuals.
B. It is a means of communication and coordination between all those involved in the project.
C. It instills a sense of agency and time consciousness.
D. It establishes the basis for monitoring and control.
E. None of the above
13. Which of the following is micro level project idea
A. National policies and strategies pronounced by government
B. Government decisions to correct social and economic imbalances.
C. External threats which necessitates projects aiming at achieving self-sufficiency in some critical
materials
D. Agreements between bilateral or multilateral development agencies among others.
 E. Initiatives of private or public enterprise in response for incentives provided by a government
14. The Preliminary Screening aspect that states there should be a potential for growth and a reasonable return on
investment.
A. Consistency with governmental priorities
B. Availability of inputs
C. Adequacy of market
D. Reasonableness of cost
E. None of the above
15. ______ Viability involves assessing and identifying the resources required and their availability for the viability
of project.
A. Community viability,
B. Location viability,
C. Commercial viability,
D. Implementation viability
E. None of the above

Part III -Matching Questions, Match items in column “A” with its corresponding items in column “B”
Column A Column B
1. sections of a feasibility report and analysis of industry or A. Operating requirements and costs
sector to which the project belongs
B. Economic and social analysis
2. Sections of a feasibility report and analysis of other
alternatives which were considered besides the proposed C. Financial analysis
project should be stated.
I. Project description
3. sections of a feasibility report and analysis of
location of project; G. Implementation plan
4. sections of a feasibility report and analysis of M. Environmental Impact assessment
distribution arrangements
5. sections of a feasibility report and analysis of land N. Preliminary analysis of alternatives.
acquisition and development T. Marketing plan
6. sections of a feasibility report and analysis of repair
U. General information
and maintenance costs
7. sections of a feasibility report and provides information Y. Capital Requirements
on costs of production
8. Sections of a feasibility report and analyses impacts
on income distribution.
9. Sections of a feasibility report and analyses impact or
damage on the environment
10. It provides a basis for organizing the work on the project
and allocating responsibility to individuals
Part IV: Short answe questions
Q1. What are major analyses of feasibility studies that feasibility report should contain? List only
Q2. Define and explain the following terms and phrases
A. Project Ideas from Technical Specialists
B. Project Ideas from Local Leaders:
C. Project Ideas from Entrepreneurs:
D. Project Ideas from Government Policy And Plans:

Unity University, Adama Campus,

Department of Accounting and Finance,
Project Management
Final Exam Answer Sheet
Name _____________________________________ ID.No _____________________

Part I :-True/False Part II:- Multiple Choice Part III: -Matching:

1. 6. 1. 6. 11. 1. 6.
2. 7. 2. 7. 12. 2. 7.
3. 8. 3. 8. 13. 3. 8.
4. 9. 4. 9. 14. 4. 9.
5. 10. 5. 10. 15. 5. 10.

Part IV: - Short Answer

Q1)